CEAT approves debenture issuance, boosts Indonesian subsidiary investment

CEAT Limited announced on December 5, 2025, that its Finance and Banking Committee approved the issuance of unsecured Non-Convertible Debentures (NCDs) amounting to up to INR 250 crores. These NCDs will be issued in one or more tranches via a private placement. The 2,500 NCDs, each with a face value of INR 1,000,000, will be rated, listed, and redeemable, with a tenure not exceeding five years. They are proposed to be listed on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited, featuring a fixed coupon rate. Principal repayment will be a bullet repayment at maturity.

Additionally, the committee approved an investment of up to IDR 3,800 million in PT CEAT Tyres Indonesia, a subsidiary incorporated in February 2025. This investment, made through the subscription of equity shares in one or more tranches, will increase CEAT's shareholding in the Indonesian entity to approximately 99.93%. PT CEAT Tyres Indonesia engages in the business of selling automotive tyres, tubes, and other ancillary products/activities. The transaction is a related party transaction being conducted at arm's length and is expected to be completed by January 31, 2026.